Track “B” Large Commercial/Industrial Sales · Energy System Benefits of Fuel Cells 7. Carbon...

Track “B” Large Commercial/Industrial Sales

& Account Management - Selling Fuel Cells

Northeast Gas Association – 2018 Sales & Marketing Conference

Christopher A. Cavanagh, PE

March 8, 2018

Our Challenge

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The Energy Tri-Lemma

Provide customers with Affordable, Reliable,

and Sustainable energy in the future.

• Modernize our infrastructure to meet 21st century demands.

• Put customers in charge.

• Connect our customers to renewable energy solutions.

An International Energy Company

UK

Electric

UK Gas

7 million + customers

11 Million Customers

UK

Electric

3,700 MW Electricity

Generation

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* Technavio

**Solar Energy Industries Association (SEIA)

***American Gas Association

The transition is underway:Industry trends

Solar

◆ Over the next five years, the U.S. solar market is expected to

nearly triple in size. **

◆ Since 2008, the cost of solar panels has dropped by almost

80%. Record solar PV interconnections 5,250 in FY’2016

Wind

◆ Total U.S. installed wind capacity, through end of 2016:

82,183 MW. First off-shore Wind deliveries this month in RI.

Electric Vehicles (EV)

◆ The EV market in the US is expected to grow at an annual

growth rate of 24% over the next three years.*

Renewable Heating

◆ UK Renewable Heat Incentive

◆ In 2011, American Gas Foundation (AGF) found that with the

right policies, Renewable Gas could meet the natural gas

needs of half of all American homes. ***

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The Way Forward

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Safety/compliance and reliability

Investing to grow and modernize the system

Improving the customer experience and

helping customers manage their energy costs

Advancing clean energy solutions and

environmental stewardship

Partnering with communities to make our

region safer, healthier and more vibrant

Creating a more customer-centric,

resilient, responsive, efficient and

environmentally sound energy network

to meet the needs of the 21st century.

Reforming the Energy Vision (REV)

◆ Creating market-based

sustainable products and services

◆ Enabling distributed energy

resources to manage load and

optimize systems

◆ Empowering customers to

manage energy use and reduce

electric bills

REV Core Policy

Outcomes

Customer Knowledge

Market Animation

System Efficiency

Fuels and Resource Diversity

System Reliability

& Resiliency

Carbon Reduction

REV is the NYS proceeding to transform

the New York electric energy industry

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▪Customer energy savings and resiliency

▪Near elimination of criteria pollutants (SOX, NOX, PM)

▪Reduction n Greenhouse gases

▪Improved electrci and gas load factors

Energy System Benefits

of Fuel Cells

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Carbon Reduction

from Generation

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Bloom Fuel CellsEnvironmental Benefits NYC

Name Plate Bloom ES-5700

Unit Size [kW] 200 1,320,000 BTU LHV

Generating Efficiency LHV 60.0% 11,563,200,000 BTU/Yr LHV

Load Factor 98.0% 12,781,687,742 BTU/Yr HHV

Annual Gas Use [DTH] 10,799 12,782 DTH

51.7% eff. LHV

Annual Carbon Benefits

Electric Produced: [kWh] 1,716,960

Carbon Produced by Grid

(Marginal) CO2

NYC Zone "J" 1,237 lbs/MWh 1,062 Tons/Yr.

Long Island Zone "K" 1,268 lbs/MWh 1,089 Tons/Yr.

Natural Gas Emissions 120,000 lbs/MMcf

Carbon Produced 666 Tons/yr

Carbon Savings:

NYC 37.3%

LI 38.8%

Agenda

◆ Fuel Cells and Some History

◆ Distributed Generation and Cogeneration

◆ Microgrids

◆ Transportation Applications

◆ Aggregating Micro CHP

◆ Emerging Concepts

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Agenda



◆ Microgrids




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Fuel Cells

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Fuel Cell Power Plant

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Commercial Fuel Cell

Product Evolution

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United

Technologies

PAFC

12.5 kW 1968

United

Technologies

PAFC

40 kW 1986

ONSI

PAFC

200 kW 1993

Fuel Cell Energy

SOFC

300 kW 2006

GE 1.3 MW SOFC

(future)

Small Fuel cells - The Hype Curve

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Agenda



◆ Microgrids




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Agenda



◆ Microgrids




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C & I Distributed Generation

with Modular Fuel Cells

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*Home Depot , LI – 2016

Solid Oxide

1.4- 3.8 MWGenerating Efficiency: 59%LHV

Thermal Available: 19%

Solid Oxide*

200 kWGenerating

Efficicncy: 65%LHV

Phosphric Acid

440 kWGenerating Efficicncy: 45%LHV

Thermal Available: 27%

Business Energy Investment Tax Credit (ITC) for Fuel Cells Extended:

30% 2018-19, 26%2020-21, 22% for 2022, sun-setting Dec 31, 2022.

Maximum of $1,500 per ½ kW

Case Study

Commercial Office

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◆ 2008

◆ 300 kW Fuel Cell

Energy

◆ Heat Recovery

9,462 MMBthu/yr

◆ IRR 20 > 7%

◆ NPV 20 > $250,000

Agenda



◆ Microgrids




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Microgrids and Resiliency

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1 Microgrids for Critical Facility Resiliency in New York State, Final Report, NYSERDA, Report

Number 14-36, December 2014, Figure 7-6, at p. 113.

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NY Prize Opportunity Zones

Microgrid Competition

Local Public/private

partnerships

(3) Stage competition for

funding (feasibility, design ,

implementation)

Initial National Grid Applicants

(22) Downstate (31) upstate

Funding ($40 Million)

• Stage 1 (83) @ $100,000 ea.

• Stage 2 $8 Million (10/2016)

• Stage 3 $5 Million ea.

Agenda



◆ Microgrids




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Fuel Cell Transportation

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2015 2020 2025 2030 2035 2040 2045 2050 2055

Baseline Low NOx CNG Bus & RNG

Electric Bus (Depot Charge) Electric Bus (Depot & In-Route)

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

Annual CO2e

(tons)

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Fuel Cell Vehicles may be in the

Future of Transportation Efficiency

Fuel Cells Vehicles (FCV)s run on hydrogen that

can be sourced from any conventional or

renewable energy source locally or distributed

Fuel cell vehicles are battery-electric hybrid, zero

emissions vehicles with advanced features:

Toyota Mira cruising range is 311 miles and

fills with compressed hydrogen in 3-5 mins

It’s high density PEM fuel cells (3.1kW/liter)

results in a fuel economy of 67 mpg equiv.

National Grid developed a hydrogen fueling

station for FCV’s at Lido Beach, NY

National Grid’s fleet will test (20) fuel cell

Nissan light trucks for the USDOE & US Hybrid

Agenda



◆ Microgrids




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Micro Combined Heat and Power

Potential US Products with 5 yrs

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1.5 kW → 12 kW SOFC

Eff: 60%

SolidPower

0.7 kW PEFC

Eff: 38%

Panasonic

0.7 → 3.0 kW SOFC

Eff: 60%

Kyocera

Micro-Combined Heat and Power

NY State REV Demonstration

5 kW microCHP

◆ Heating with an Engine or Fuel Cell

◆ Japan has made the most progress

◆ Customer Benefit

◆ Energy cost savings through self generation and

beneficial use of heat

◆ Backup Power

◆ Carbon Savings: 20-30%+ (based on 1.2 kW)

◆ Gas technology to relieve electric constraints

◆ Increased gas revenue: 20-25% (based on size)

◆ 10 ea. NYC & LI

(funded in part through shared savings)

Customer Knowledge

Market Animation

System Efficiency

System Reliability

& Resiliency

Carbon Reduction

$755,000

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Savings Simulation (SOLIDPower)Small NYC Apartment Bldg (common area)

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◆ Thermal load following

◆ Net Metered (if allowed)

◆ Residential DG gas rate

1B-DG

◆ Annual Savings: $2,900

Agenda



◆ Microgrids




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Emerging Concepts

◆ Stationary Direct Use of Hydrogen

◆ Backup Power (e.g. telecom)

◆ Forklifts (warehouse productivity)

◆ Direct Use of DC Power

(Combine with Solar)

◆ Improving Power Density

(e.g. MEAn Technologies 40%

increase in power density)

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With your help we can lead the way in creating the

climate for change

[email protected]

Track “B” Large Commercial/Industrial Sales · Energy System Benefits of Fuel Cells 7. Carbon...

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